Avnet Initiates Quarterly Dividend

The electronic components distributor says its success has given it the flexibility to make a quarterly payout.

By Rich Duprey – Aug 12, 2013 at 10:30PM EST

Electronic components distributor Avent (AVT +1.42%) announced today that it is initiating a quarterly dividend program starting with a rate of $0.15 per share. The board of directors said the quarterly dividend is payable on September 20 to holders of record at the close of business on September 10.

Noting that its success in growing the company has given it the financial wherewithal and flexibility to pay a dividend, Avnet CEO Rick Hamada said, "Given our confidence in and commitment to long-term shareholder value creation, we believe now is an appropriate time to incorporate a more consistent element of returning capital to shareholders in the form of a dividend."

The new dividend payment equates to a $0.60-per-share annual dividend, yielding 1.5% based on the closing price today of Avnet's stock.

Rich has been a Fool since 1998 and writing for the site since 2004. After 20 years of patrolling the mean streets of suburbia, he hung up his badge and gun to take up a pen full time. Having made the streets safe for Truth, Justice, and Krispy Kreme donuts, he now patrols the markets looking for companies he can lock up as long-term holdings in a portfolio. His coverage reflects his passion for motorcycles, booze, and guns (though not enjoyed all at the same time...usually), but his writing also covers the broader sectors of consumer goods, technology, and industrials. So follow along as he tries to break down complex topics to make them more understandable and useful to the average investor. Have a story idea? Contact Rich here. I may not be able to respond to every suggestion, but I do read them all! Does an article needs a correction? Reach Rich here.

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Avnet Initiates Quarterly Dividend

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